Panama to Patagonia

by Charles M. Pepper

But it may be said that until the interoceanic canal is actually open these subjects are too remote to call for immediate consideration. This view does not hold when analysis is made of the swift recognition of its effect by South American countries. There are present-day influences which are clear enough to be taken into account.

For the entire West Coast there is at once a beneficial result in having the Canal an enterprise of the United States government. This is the equal treatment which must be accorded all the steamship companies in transshipping freight over the Panama Railway. The line was operated in the interest of the transcontinental railroads to prevent competition. Under this arrangement little regard was shown for the traffic from the coast south of Panama. The result of the control of the isthmian railway line by the transcontinental roads was against encouraging the steamship lines to seek to increase their freight between Valparaiso and the intervening ports to Panama for transshipment, because the Panama Railway exacted what it pleased.[5] With the stock of the company vested in the United States, hereafter all traffic agreements must be made on the basis of equality. This is a very important factor in the tendency of the West Coast countries to mould their national policies for industrial development and commercial expansion. It enables them to enjoy some of the benefits of the Canal without waiting for its completion. It means more shipping from the year 1906 on.

5 In the memorial presented in 1905 to the United States government by the diplomatic representatives of various South American Republics, asking for fair treatment in Panama railroad rates, these statements were made:

It may be calculated that the most distant ports of our respective Republics are from New York, 4,500 miles, via Panama. From those same ports to New York there is a distance of over 11,000 miles, via Magellan; and, nevertheless, the transportation by this last route and the transportation by steamer from our ports to Europe, are on an average from 25 to 30 per cent cheaper than our commerce with New York via Panama.

The Peruvian sugar pays, by the Isthmus, 30 shillings sterling a ton, and 23 shillings sterling a ton via Magellan.

The cacao of Guayaquil, via Panama, pays to Europe from 52 to 58 shillings a ton, and to New York 65 to 68 shillings a ton.

From Hamburg shipments of rice from India are constantly being made to Ecuador, via Panama, at the rate of from 30 to 33 shillings sterling per ton of 2,240 pounds, or, say, from $7.50 to $8 per ton; while the same article from New York pays at the rate of $0.60 per 100 pounds, or, say, $13.20 per ton,—an overcharge of almost 75 per cent. Twelve coal-oil stoves, which in New York, free-on-board, cost from $45 to $48, pay on the coast of Ecuador and of Peru 30 and 37½ cents, respectively, per cubic foot, or, say, $19.20 to $21, which represents 42.66 per cent upon the cost price. The same article bought in Germany would pay a freight of from $6.40 to $6.75.

An international good also comes from the presence of the United States on the Isthmus in the capacity of a sanitary authority. It will not be hampered, as at home, by state quarantine systems. The example of what it is doing at Panama will be of immense benefit to all the ports south to Valparaiso. Its resources and its assistance will be at the disposal of the various governments which may seek its aid. With them power is centralized, and they will be able to coöperate effectually. The International Sanitary Bureau, with headquarters in Washington, for which provision was made by the Pan-American Conference held in Mexico, may become a vital force through this means. Epidemics and plagues, of which the most malignant is the yellow fever, may never be entirely wiped out, but that their area can be restricted and their ravages infinitely lessened will be demonstrated by a few years’ experience. Commerce will be immensely the gainer, and the trade of the West Coast may look for a steady and natural growth in proportion as the epidemic diseases of the seaports are controlled.